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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): October 28, 2005 (October 27, 2005)

 

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UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

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DELAWARE		1-10765		23-2077891
(State or other jurisdiction of Incorporation or Organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, PENNSYLVANIA 19406

(Address of principal executive office) (Zip Code)

 

Registrant’s telephone number, including area code (610) 768-3300

 

Not Applicable

(Former name or former address, if changed since last report)

 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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Item 2.02 Results of Operations and Financial Condition

 

On October 27, 2005, Universal Health Services, Inc. (the “Company”) issued its 2005 third quarter earnings release. A copy of the Company’s press release is furnished as exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(c) Exhibits. 99.1 Universal Health Services, Inc. Press Release dated October 27, 2005

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Date: October 28, 2005

 

Exhibit Index

 

Exhibit No.		Exhibit
99.1		Press release, dated October 27, 2005

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

CONTACT:		Steve Filton
		Chief Financial Officer		October 27, 2005
		610-768-3300

 

UNIVERSAL HEALTH SERVICES, INC. REPORTS

THIRD QUARTER EARNINGS INCLUDING IMPACT OF HURRICANE KATRINA

 

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its net income for the three-month period ended September 30, 2005 was $8.3 million, or $.15 per diluted share, as compared to $37.8 million, or $.62 per diluted share, during the third quarter of 2004. Net revenues increased 6% to $971 million during the third quarter of 2005 as compared to $914 million during the quarter ended September 30, 2004.

 

Net income was $228.6 million, or $3.73 per diluted share, during the nine-month period ended September 30, 2005 as compared to $132.3 million, or $2.14 per diluted share, during the nine-month period of 2004. Net revenues increased 9% to $2.97 billion during the nine-month period ended September 30, 2005 as compared to $2.73 billion during the prior year nine-month period.

 

As previously announced, our Methodist Hospital (“Methodist”) and Lakeland Medical Pavilion (“Lakeland”) located in New Orleans, Louisiana and Chalmette Medical Center (“Chalmette”) and Virtue Street Pavilion located in Chalmette, Louisiana all suffered substantial damage from Hurricane Katrina. All facilities remain closed and non-operational as we continue to assess the damage and the likely recovery period for the facilities and surrounding communities.

 

The majority of the real estate assets of Chalmette are leased by us from Universal Health Realty Income Trust and according to the terms of the lease in such circumstances, we have the obligation to: (i) restore the property to substantially the same condition existing before the damage; (ii) offer to acquire the property in accordance with the terms of the lease, or; (iii) offer a substitution property equivalent in value to Chalmette.

 

Included in our financial results for the three-month period ended September 30, 2005 are the following items:

 

•

a combined after-tax charge of $78.1 million ($128.9 million pre-tax and pre-minority interest) to reflect the impact of the Hurricane related

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expenses which include: (i) the write-down of the destroyed or damaged depreciable assets of each facility; (ii) a charge to reflect our estimated obligation pursuant to the terms of the lease on the Chalmette facility; (iii) asset impairment charges resulting from the Hurricane to further reduce the carrying-values of the depreciable real estate assets of Methodist and Lakeland to their estimated net realizable values, and; (iv) various other expenses incurred in connection with the Hurricane and its aftermath such as salaries, wages and benefits paid to employees of the facilities after the storm, an increase in the provision for doubtful accounts of these facilities, and other expenses incurred in connection with the patients, employees and properties of each facility;

 

•

after-tax Hurricane related insurance recoveries of $49.8 million ($81.7 million pre-tax and pre-minority interest) reflecting our preliminary estimate of the minimum level of probable commercial insurance proceeds;

 

•

$8.2 million of after-tax income ($13.0 million pre-tax) consisting primarily of the net combined prior period effect of supplemental reimbursements received from certain states and contractual settlements.

 

Reported income from continuing operations for the three-month period ended September 30, 2005 was $9.5 million, or $.17 per diluted share, as compared to $39.4 million, or $.64 per diluted share, during the three-month period ended September 30, 2004. Reported income from continuing operations for the nine-month period ended September 30, 2005 was $100.8 million, or $1.71 per diluted share, as compared to $126.2 million, or $2.05 per diluted share, during the nine-month period ended September 30, 2004.

 

Excluding the above-mentioned items included in our financial results for the three-month period ended September 30, 2005 and adjusting the other periods presented for the items listed on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information, our adjusted income from continuing operations was $29.6 million, or $.54 per diluted share, during the third quarter of 2005 as compared to $40.8 million, or $.66 per diluted share, during the third quarter of 2004. Our adjusted income from continuing operations was $123.9 million, or $2.07 per diluted share during the nine-month period ended September 30, 2005 as compared to $126.0 million, or $2.05 per diluted share, during the prior year nine-month period.

 

Since our above mentioned facilities located in Louisiana have been closed since the Hurricane and therefore no revenues have been reflected in the accompanying financial statements for the post-hurricane period, we have excluded these facilities from the following information for the period of September 1^st through September 30^th of 2005 and 2004. At our acute care hospitals owned during both periods, inpatient admissions increased 2.4%, patient days increased 0.3%, revenues increased 4.9% and revenue per adjusted patient day increased 3.9% during the 2005 third quarter, as compared to the

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comparable prior year quarter. At our behavioral health hospitals owned in both periods, inpatient admissions increased 8.2%, patient days increased 5.1%, revenues increased 10.0%, and revenue per adjusted patient day increased 5.1% during the third quarter of 2005 as compared to the comparable prior year quarter.

 

Our consolidated operating margin decreased to 13.0% during the three-month period ended September 30, 2005 as compared to 14.2% during the same quarter in the prior year. At our acute care hospitals owned during both three-month periods ended September 30, 2005 and 2004, the operating margin decreased to 11.8% during the third quarter of 2005 from 16.4% during the third quarter of the prior year. The operating margin at our behavioral health hospitals owned during both three-month periods increased to 22.7% during the third quarter of 2005 from 22.2% during the comparable quarter of the prior year.

 

The large majority of the decrease in our adjusted income from continuing operations during the third quarter of 2005, as compared to the comparable prior year quarter, and in the operating margin at our acute care hospitals owned during both three-month periods, can be attributed to an increase in the level of uninsured patients at our acute care facilities and to a continued decline in the operating performance of our two acute care hospitals located in the McAllen/Edinburg, Texas market. The increase in the level of uninsured patients at our acute care facilities resulted in a significant increase in our provision for doubtful accounts and charity care provided during the third quarter of 2005 as compared to the comparable prior year quarter. Our hospitals in the McAllen/Edinburg market continue to experience a decrease in the combined admissions, patient days and payer mix resulting primarily from continued intense competition from a physician-owned hospital in the market.

 

During the third quarter, we repurchased 1.27 million of our shares at an average price of $52.70 per share. We also previously announced that our Board of Directors authorized an additional 2.0 million share repurchase program to supplement the 2.1 million shares remaining under previous authorizations.

 

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on October 28, 2005. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on October 28, 2005 and will continue through midnight on November 4, 2005. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number of 1205569. This call will also be available live over the internet at our web site at www.uhsinc.com.

 

Universal Health Services, Inc. is one of the nation’s largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our website: http://www.uhsinc.com.

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This press release contains forward-looking statements based on current management expectations. Numerous factors, including those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in “Forward-Looking Statements and Risk Factors” on pages 17 and 18 of our Form 10-Q for the quarterly period ended June 30, 2005), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share, adjusted operating income and adjusted operating margin, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature such as property write-downs, gains on sales of assets and businesses or other amounts reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this Report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2004. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. Below are Schedules of Non-GAAP Supplemental Consolidated Income Statement Information which reconcile these measures to net income for the periods presented.

 

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended September 30,								Nine months ended September 30,
		2005				2004				2005				2004
Net revenues		$	970,772			$	914,093			$	2,968,305			$	2,726,713
Operating charges:
Salaries, wages and benefits			395,938				374,221				1,210,175				1,115,014
Other operating expenses			229,119				216,375				694,991				637,605
Supplies expense			117,127				113,715				369,787				342,820
Provision for doubtful accounts			102,734				79,907				280,620				237,708
Depreciation and amortization			38,552				37,353				116,236				105,695
Lease and rental expense			14,688				15,257				45,443				45,405
Hurricane related expenses			128,895				—				128,895				—
Hurricane insurance recoveries			(81,709	)			—				(81,709	)			—
			945,344				836,828				2,764,438				2,484,247
Income before interest expense, minority interests andincome taxes			25,428				77,265				203,867				242,466
Interest expense, net			6,404				9,351				24,530				28,277
Minority interests in earnings of consolidated entities			6,673				5,595				22,518				14,305
Minority interests in hurricane related expenses and insurance recoveries			(2,659	)			—				(2,659	)			—
Income before income taxes			15,010				62,319				159,478				199,884
Provision for income taxes			5,531				22,967				58,677				73,638
Income from continuing operations			9,479				39,352				100,801				126,246
Income (loss) from discontinued operations, net of income taxexpense (a)			(1,160	)			(1,507	)			127,770				6,072
Net income		$	8,319			$	37,845			$	228,571			$	132,318
Basic earnings (loss) per share: (b)
From continuing operations		$	0.17			$	0.68			$	1.79			$	2.19
From discontinued operations			(0.02	)			(0.03	)			2.27				0.10
Total basic earnings per share		$	0.15			$	0.65			$	4.06			$	2.29
Diluted earnings (loss) per share: (b)
From continuing operations		$	0.17			$	0.64			$	1.71			$	2.05
From discontinued operations			(0.02	)			(0.02	)			2.02				0.09
Total diluted earnings per share		$	0.15			$	0.62			$	3.73			$	2.14

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended September 30,								Nine months ended September 30,
		2005				2004				2005				2004
(a) Calculation of income from discontinued operations, net of income tax:
(Loss) income from operations		$	(1,825	)		$	(5,437	)		$	2,608			$	4,677
Gains on divestitures			—				3,073				186,220				5,411
(Loss) income from discontinued operations, pre-tax			(1,825	)			(2,364	)			188,828				10,088
Income tax benefit (provision)			665				857				(61,058	)			(4,016	)
(Loss) income from discontinued operations, net of income tax expense		$	(1,160	)		$	(1,507	)		$	127,770			$	6,072
(b) Earnings per share calculation:
Basic:
Income from continuing operations		$	9,479			$	39,352			$	100,801			$	126,246
Less: Dividends on unvested restricted stock, net of taxes			(26	)			(28	)			(81	)			(84	)
Income from continuing operations - basic		$	9,453			$	39,324			$	100,720			$	126,162
(Loss) income from discontinued operations			(1,160	)			(1,507	)			127,770				6,072
Net income - basic		$	8,293			$	37,817			$	228,490			$	132,234
Weighted average number of common shares - basic			54,682				57,791				56,210				57,659
Basic earnings (loss) per share:
From continuing operations		$	0.17			$	0.68			$	1.79			$	2.19
From discontinued operations			(0.02	)			(0.03	)			2.27				0.10
Total basic earnings per share		$	0.15			$	0.65			$	4.06			$	2.29
Diluted:
Income from continuing operations		$	9,479			$	39,352			$	100,801			$	126,246
Less: Dividends on unvested restricted stock, net of taxes			(26	)			(28	)			(81	)			(84	)
Add: Debenture interest, net of taxes			—				2,333				7,196				6,906
Income from continuing operations - diluted		$	9,453			$	41,657			$	107,916			$	133,068
(Loss) income from discontinued operations			(1,160	)			(1,507	)			127,770				6,072
Net income - diluted		$	8,293			$	40,150			$	235,686			$	139,140
Weighted average number of common shares			54,682				57,791				56,210				57,659
Add: Shares for conversion of convertible debentures			—				6,577				6,577				6,577
Other share equivalents			466				542				476				754
Weighted average number of common shares and equiv. - diluted			55,148				64,910				63,263				64,990
Diluted earnings (loss) per share:
From continuing operations		$	0.17			$	0.64			$	1.71			$	2.05
From discontinued operations			(0.02	)			(0.02	)			2.02				0.09
Total diluted earnings per share		$	0.15			$	0.62			$	3.73			$	2.14

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		September 30, 2005			December 31, 2004
Assets:
Cash and cash equivalents		$	82,156		$	33,125
Accounts receivable, net			505,366			552,538
Other current assets			103,663			90,392
Hurricane insurance recoveries receivable			81,709			—
Property, plant and equipment, net			1,312,351			1,448,066
Other assets			655,998			765,852
Assets held for sale			1,782			132,870
Total Assets		$	2,743,025		$	3,022,843
Liabilities and Stockholders’ Equity:
Current portion of long-term debt		$	3,873		$	16,968
Liabilities held for sale			—			11,116
Other current liabilities			522,435			441,572
Other noncurrent liabilities			259,033			243,617
Long-term debt			528,302			852,229
Deferred income taxes			43,981			50,212
Minority interest			161,404			186,543
Stockholders’ equity			1,223,997			1,220,586
Total Liabilities and Stockholders’ Equity		$	2,743,025		$	3,022,843

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Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information

For the Three Months Ended September 30, 2005 and 2004

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended September 30, 2005							Three months ended September 30, 2004
Net revenues		$	970,772			100.0	%		$	914,093			100.0	%
Operating charges:
Salaries, wages and benefits			395,938			40.8	%			374,221			40.9	%
Other operating expenses			229,119			23.6	%			216,375			23.7	%
Supplies expense			117,127			12.1	%			113,715			12.4	%
Provision for doubtful accounts			102,734			10.6	%			79,907			8.7	%
			844,918			87.0	%			784,218			85.8	%
Operating income/margin			125,854			13.0	%			129,875			14.2	%
Lease and rental expense			14,688							15,257
Minority interests in earnings of consolidated entities			6,673							5,595
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			104,493							109,023
Hurricane related expenses			128,895							—
Hurricane insurance recoveries			(81,709	)						—
Minority interests in hurricane related expenses and insurance recoveries			(2,659	)						—
Depreciation and amortization			38,552							37,353
Interest expense, net			6,404							9,351
Income before income taxes			15,010							62,319
Provision for income taxes			5,531							22,967
Income from continuing operations			9,479							39,352
Loss from discontinued operations, net of income taxes			(1,160	)						(1,507	)
Net income		$	8,319						$	37,845

 

		Three months ended September 30, 2005								Three months ended September 30, 2004
		Amount				Per Diluted Share				Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	9,479			$	0.17			$	39,352		$	0.64
Add: Hurricane related expenses, net of minority interests and income taxes			78,064				1.42				—			—
Less: Hurricane related insurance recoveries, net of minority interests and income taxes			(49,758	)			(0.90	)			—			—
Less: Prior period effect of supplemental reimbursements received from certain states and contractual settlements			(8,201	)			(0.15	)			—			—
Add: Hurricane related expenses, net of income taxes			—				—				1,474			0.02
Adjusted income from continuing operations		$	29,584			$	0.54			$	40,826		$	0.66

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Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information

For the Nine Months Ended September 30, 2005 and 2004

(in thousands, except per share amounts)

(unaudited)

 

		Nine months ended September 30, 2005							Nine months ended September 30, 2004
Net revenues		$	2,968,305			100.0	%		$	2,726,713		100.0	%
Operating charges:
Salaries, wages and benefits			1,210,175			40.8	%			1,115,014		40.9	%
Other operating expenses			694,991			23.4	%			637,605		23.4	%
Supplies expense			369,787			12.5	%			342,820		12.6	%
Provision for doubtful accounts			280,620			9.5	%			237,708		8.7	%
			2,555,573			86.1	%			2,333,147		85.6	%
Operating income/margin			412,732			13.9	%			393,566		14.4	%
Lease and rental expense			45,443							45,405
Minority interests in earnings of consolidated entities			22,518							14,305
Earnings before depreciation and amortization, interest expense, and income taxes ("EBITDA")			344,771							333,856
Hurricane related expenses			128,895							—
Hurricane insurance recoveries			(81,709	)						—
Minority interests in hurricane related expenses and insurance recoveries			(2,659	)						—
Depreciation and amortization			116,236							105,695
Interest expense, net			24,530							28,277
Income before income taxes			159,478							199,884
Provision for income taxes			58,677							73,638
Income from continuing operations			100,801							126,246
Income from discontinued operations, net of income taxes			127,770							6,072
Net income		$	228,571						$	132,318

 

		Nine months ended September 30, 2005								Nine months ended September 30, 2004
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	100,801			$	1.71			$	126,246			$	2.05
Add: Hurricane related expenses, net of minority interests and income taxes			78,064				1.23				—				—
Less: Hurricane related insurance recoveries, net of minority interests and income taxes			(49,758	)			(0.79	)			—				—
Less: Prior period effect of supplemental reimbursements received from certain states and contractual settlements			(5,225	)			(0.08	)			—				—
Add: Hurricane related expenses, net of income taxes			—				—				1,474				0.02
Less: DSH revenue attributable to prior year, net of income taxes			—				—				(1,748	)			(0.02	)
Adjusted income from continuing operations		$	123,882			$	2.07			$	125,972			$	2.05

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Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

 

Same Facility:

 

		% Change Quarter Ended 9/30/2005			% Change 9 months ended 9/30/2005
Acute Care Hospitals
Revenues		4.9	%		7.0	%
Adjusted Admissions		2.9	%		2.6	%
Adjusted Patient Days		1.0	%		1.6	%
Revenue Per Adjusted Admission		2.0	%		4.3	%
Revenue Per Adjusted Patient Day		3.9	%		5.3	%
Behavioral Health Hospitals
Revenues		10.0	%		8.3	%
Adjusted Admissions		7.5	%		4.8	%
Adjusted Patient Days		4.7	%		4.8	%
Revenue Per Adjusted Admission		2.4	%		3.4	%
Revenue Per Adjusted Patient Day		5.1	%		3.4	%

 

UHS Consolidated

 

		Third Quarter Ended								Nine months Ended
		9/30/2005				9/30/2004				9/30/2005				9/30/2004
Revenues		$	970,772			$	914,093			$	2,968,305			$	2,726,713
EBITDA (1)			104,493				109,023				344,771				333,856
EBITDA Margin (1)			10.8	%			11.9	%			11.6	%			12.2	%
Cash Flow From Operations			115,301				88,840				345,739				313,515
Days Sales Outstanding			48				53				46				52
Capital Expenditures			62,496				59,311				171,343				177,329
Debt (net of cash)			—				—				450,019			$	806,136
Shareholders Equity			—				—				1,223,997			$	1,214,377
Debt / Total Capitalization			—				—				26.9	%			39.9	%
Debt / EBITDA (2)			—				—				0.94				1.66
Debt / Cash From Operations (2)			—				—				1.05				2.14
Acute Care EBITDAR Margin (3)			13.0	%			15.8	%			14.4	%			15.5	%
Behavioral Health EBITDAR Margin (3)			23.2	%			22.2	%			24.4	%			23.4	%

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(1)	Net of Minority Interest

(2)	Latest 4 quarters

(3)	Before Corporate overhead allocation and minority interest

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

SEPTEMBER 30, 2005

 

AS REPORTED:

 

FOR THE THREE MONTHS ENDED
		ACUTE (1) (2)											BEHAVIORAL HEALTH
		09/30/05				09/30/04				%			09/30/05				09/30/04				%
Hospitals owned and leased			21				24			-12.5	%			45				44			2.3	%
Average licensed beds			5,375				5,615			-4.3	%			4,517				4,386			3.0	%
Patient days			275,148				280,876			-2.0	%			335,825				318,778			5.3	%
Average daily census			2,990.7				3,053.0			-2.0	%			3,650.3				3,465.0			5.3	%
Occupancy-licensed beds			55.6	%			54.4	%		2.3	%			80.8	%			79.0	%		2.3	%
Admissions			62,502				61,980			0.8	%			25,724				23,764			8.2	%
Length of stay			4.4				4.5			-2.9	%			13.1				13.4			-2.7	%
Inpatient revenue		$	1,752,146			$	1,643,610			6.6	%		$	336,676			$	315,401			6.7	%
Outpatient revenue			707,282				647,127			9.3	%			45,111				42,374			6.5	%
Total patient revenue			2,459,428				2,290,737			7.4	%			381,787				357,775			6.7	%
Other revenue			12,352				9,531			29.6	%			7,122				8,416			-15.4	%
Gross hospital revenue			2,471,780				2,300,268			7.5	%			388,909				366,191			6.2	%
Total deductions			1,708,052				1,572,998			8.6	%			193,839				189,400			2.3	%
Net hospital revenue		$	763,728			$	727,270			5.0	%		$	195,070			$	176,791			10.3	%
SAME FACILITY:
FOR THE THREE MONTHS ENDED
		ACUTE (1) (3)											BEHAVIORAL HEALTH (4)
		09/30/05				09/30/04				%			09/30/05				09/30/04				%
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,295				5,430			-2.5	%			4,487				4,386			2.3	%
Patient days			273,718				272,955			0.3	%			335,036				318,817			5.1	%
Average daily census			2,975.2				2,966.9			0.3	%			3,641.7				3,465.4			5.1	%
Occupancy-licensed beds			56.2	%			54.6	%		2.8	%			81.2	%			79.0	%		2.7	%
Admissions			62,017				60,577			2.4	%			25,721				23,764			8.2	%
Length of stay			4.4				4.5			-2.0	%			13.0				13.4			-2.9	%

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(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations. Acute care hospitals located in New Orleans are excluded from September 1, 2005 through year-to-date.

(3)

All Discontinued Operations are excluded in current and prior years. Lakeland is included in both current and prior years for January only. All three acute care hospitals located in New Orleans are excluded in both current and prior years from September 1st through year to date. Lakewood Ranch is included in both current and prior years from September 1 through year to date.

(4)	Stonington is included in both current and prior years from April 1 through year to date. The four facilities purchased from Keystone are included in both current and prior years from May 1st through year to date. King George School is excluded in both current and prior years.

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

SEPTEMBER 30, 2005

 

AS REPORTED:

 

FOR THE NINE MONTHS ENDED
		ACUTE (1) (2)											BEHAVIORAL HEALTH
		09/30/05				09/30/04				%			09/30/05				09/30/04				%
Hospitals owned and leased			21				24			-12.5	%			45				44			2.3	%
Average licensed beds			5,493				5,657			-2.9	%			4,463				4,168			7.1	%
Patient days			877,216				865,962			1.3	%			1,004,913				913,399			10.0	%
Average daily census			3,213.2				3,160.4			1.7	%			3,681.0				3,333.6			10.4	%
Occupancy-licensed beds			58.5	%			55.9	%		4.7	%			82.5	%			80.0	%		3.1	%
Admissions			193,894				188,437			2.9	%			76,752				71,847			6.8	%
Length of stay			4.5				4.6			-1.6	%			13.1				12.7			3.0	%
Inpatient revenue		$	5,538,861			$	5,039,906			9.9	%		$	1,007,384			$	919,867			9.5	%
Outpatient revenue			2,116,715				1,896,443			11.6	%			145,092				131,822			10.1	%
Total patient revenue			7,655,576				6,936,349			10.4	%			1,152,476				1,051,689			9.6	%
Other revenue			39,850				27,330			45.8	%			23,801				25,367			-6.2	%
Gross hospital revenue			7,695,426				6,963,679			10.5	%			1,176,277				1,077,056			9.2	%
Total deductions			5,344,201				4,785,631			11.7	%			592,259				556,630			6.4	%
Net hospital revenue		$	2,351,225			$	2,178,048			8.0	%		$	584,018			$	520,426			12.2	%
SAME FACILITY:
FOR THE NINE MONTHS ENDED
		ACUTE (1) (3)											BEHAVIORAL HEALTH (4)
		09/30/05				09/30/04				%			09/30/05				09/30/04				%
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,379				5,595			-3.9	%			4,279				4,168			2.7	%
Patient days			869,420				858,020			1.3	%			960,469				913,352			5.2	%
Average daily census			3,184.7				3,131.5			1.7	%			3,518.2				3,333.4			5.5	%
Occupancy-licensed beds			59.2	%			56.0	%		5.8	%			82.2	%			80.0	%		2.8	%
Admissions			191,704				187,034			2.5	%			75,715				71,847			5.4	%
Length of stay			4.5				4.6			-1.1	%			12.7				12.7			-0.2	%

---

(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations. Acute care hospitals located in New Orleans are excluded from September 1, 2005 through year-to-date.

(3)

All Discontinued Operations are excluded in current and prior years. Lakeland is included in both current and prior years for January only. All three acute care hospitals located in New Orleans are excluded in both current and prior years from September 1st through year to date. Lakewood Ranch is included in both current and prior years from September 1 through year to date.

(4)	Stonington is included in both current and prior years from April 1 through year to date. The four facilities purchased from Keystone are included in both current and prior years from May 1st through year to date. King George School is excluded in both current and prior years.